Recycling of Stolen Metals Preliminary Investigation 11-1-11

Preliminary Investigation Caltrans Division of Research and Innovation Produced by CTC & Associates LLC Laws to Prevent Metal Theft and Recycling of Stolen Metals Requested by Pete Zaniewski, Caltrans Division of Research and Innovation November 1, 2011 The Caltrans Division of Research and Innovation (DRI) receives and evaluates numerous research problem statements for funding every year. DRI conducts Preliminary Investigations on these problem statements to better scope and prioritize the proposed research in light of existing credible work on the topics nationally and internationally. Online and print sources for Preliminary Investigations include the National Cooperative Highway Research Program (NCHRP) and other Transportation Research Board (TRB) programs, the American Association of State Highway and Transportation Officials (AASHTO), the research and practices of other transportation agencies, and related academic and industry research. The views and conclusions in cited works, while generally peer reviewed or published by authoritative sources, may not be accepted without qualification by all experts in the field. Executive Summary Background As the prices of metals such as copper, aluminum and steel rise, theft of these metals is becoming an increasing problem nationwide. In search of valuable metal to sell to recyclers, thieves are stealing not only scrap metal but items that are still in use, such as copper wire, guardrail, street signs, traffic light components, and pieces of bridges and other structures. Caltrans is investigating the components of a multifaceted approach to preventing this type of metal theft. One aspect of this effort is to prevent stolen metal from being accepted by recyclers. This Preliminary Investigation reviews the laws in place in other states to prevent recycling of stolen metal, including penalties for recyclers and for those selling stolen items. Summary of Findings We reviewed the statutes of other states that regulate the purchase of scrap metal by recyclers or that provide statutes specifically addressing metal theft. Many of these states have similar basic administrative requirements for recyclers purchasing metal items, and violating them is generally a misdemeanor for a first offense. Some states also specify penalties for recyclers who knowingly receive stolen metal items. These vary from small fines to felony convictions and associated prison time. Some states list specific penalties for metal theft, while other states presumably classify the theft as they would any other, generally according to the value of the items stolen. Our findings are divided into two sections: • Key Provisions of Metal Theft Laws. Based on an analysis of all states’ statutes, this section: o Summarizes common provisions that are similar from state to state, such as basic documentation and reporting requirements for metal transactions. o Details notable provisions that are unique to only a few states, such as specific provisions for theft of transportation-related items, approaches to assigning penalties, requirements for theft notification and participation in theft alert systems, and additional initiatives and programs. • State Statutes. This section provides more detail on each state’s laws, as well as links to the full text of relevant statutes. It is divided into three subsections: o California Statutes. o Statutes with Notable Provisions. o Other State Statutes. Key Provisions of Metal Theft Laws Common Provisions The laws we reviewed all include similar basic elements designed to deter people from recycling stolen metals, such as requiring recyclers to document sellers’ identities, record item descriptions, hold items for a specified number of days, and issue payments by check. These common provisions are aggregated below, and are not included in the individual statute summaries. Specific requirements differ from state to state. Metals Most statutes define the metals they apply to, often nonferrous metals such as copper, aluminum, steel, lead and brass. Requirements for Recyclers • Seller identification o Document the seller’s identity, including basic information such as name, address, phone number, birthdate and sex. Many states also require documentation of the ID number on the seller’s photo ID, and details of the vehicle used to deliver the sold items, such as license plate number and vehicle description (make, model, color, etc.). o Take a photograph of the seller and/or photocopy his photo ID. Some states require the photo to be digitally stamped with the date and time, and some allow a video to be taken instead or in addition. Several states also require that a thumbprint or fingerprint be taken. o Obtain certification (such as a signed written statement, affidavit or notarized document) that the seller is legally entitled or authorized to dispose of the metal. For items that are marked as belonging to a governmental entity or company, this may include documentation from the agency or company. o Obtain certification (such as a signed written statement) that the seller has not been involved in a previous scrap metal theft. o Verify that the seller is at least 18 years of age. Some states allow purchases from minors with a parent or guardian present. • Item description and transaction details o Record identifying details about each piece of metal accepted, including physical description, weight, serial numbers and identifying marks. o Take a photograph of the metal. Some states require the photo to be digitally stamped with the date and time. o Obtain the original purchase receipt for the item or a certified statement from the seller regarding the when and where the item was originally purchased. o Record the details of the recycling transaction, which may include date, time and price paid. 2 • Other administrative requirements o Hold the item for a specific amount of time (often a few days to a week) before melting down or reselling. o Issue payment by check for certain items, or for items of a certain value. The check may be required to be mailed to a specified address, such as the address on the seller’s photo ID. o Keep detailed, updated transaction records; maintain records for a specific period of time (often one to three years). Some states require electronic record keeping. o Allow law enforcement to inspect purchased metals and transaction records. o Inform law enforcement of suspicious transactions or attempted transactions. Notable Provisions Some state statutes include additional provisions addressing the theft of specific items, detailing penalties, or addressing theft notification and awareness. This section also lists additional programs related to metal theft that a few states have required through legislation. Across all states, Florida and Michigan are among those with the most comprehensive laws related to metal theft. Transportation-Related Items Several states mention items such as street signs, guardrail and traffic signals in their statutes as items that recyclers are prohibited from accepting except from an authorized source. Indiana assigns an additional penalty for stealing an item that relates to transportation safety, where its absence creates a transportation safety hazard. (The crime is increased by one classification.) Washington’s law allows for an “aggravated exceptional sentence” for a metal theft that creates a public hazard. States that restrict the purchase of transportation-related items include Florida, Michigan, Ohio, Oregon, Pennsylvania, Tennessee, Texas and Washington. Most do not assign additional penalties for these thefts. Penalties The statutes vary considerably in how they address penalties, making comparisons across all states difficult. In many states, this topic is addressed as part of the state’s regulations for scrap metal dealers, and in some cases penalties for violation are not specified. Other states do list specific penalties, such as for theft or receiving stolen metal items, but these penalties may be the same as the state’s penalties for theft of other items of the same value. This makes it more challenging to determine which states have additional penalties for metal theft. Among states that list specific penalties for recyclers: • Violating record-keeping or other administrative rules (the areas addressed under Common Provisions above) is generally a misdemeanor. For subsequent offenses, this often increases to a higher class of misdemeanor or a low class of felony. • Knowingly receiving stolen metal items is generally classified according to the items’ value. In many states, this is a misdemeanor for items under a certain value, such as $250, and becomes a felony for items of higher value. Among states that list specific penalties for sellers: • Some states’ laws are worded such that sellers may be prosecuted for any violation of the regulations, which could include administrative rules. This is generally a misdemeanor. 3 • Providing false information or falsified documents in connection with a metal sale is typically a misdemeanor. • Theft of metal items is classified according to the items’ value, sometimes mirroring the penalties to recyclers for receiving stolen metal items. It is often a misdemeanor for items under a certain value, such as $250, and becomes a felony for items of higher value. Some states take additional approaches to assigning penalties for metal theft, receiving stolen metal, and other related crimes. These include: • High penalties: In Florida, it is a first-degree felony (punishable by up to 30

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